How does this 360 Magnum combo sound?

As fort the cam, what's the difference between grinds, and what's a "mello grind?" I am really new to this stuff so pardon the ignorance.
Mello? Thats on the other end of the scale of radical.

Each and every grind you see in a book/catolog is different in some way even if they seem to have the same numbers. They could have exactly the same numbers and a different grind/part number. When you think of the major headache you can have from this, STOP, do worry, theres a simple way that you can do this and still make a good choice without knowing nothing about cams.

I'll get into this with you in a minute.

Would porting the heads be less expensive than the aluminum Edelbrock heads?

Yes, but you won't need to at the HP level you asked about. You can use the head as is. I mentioned "Prep the heads" before. This would be making sure the valves are right in the guides and the same height uptop the springs. Then furtherly, the "Prep" work would included a valve job with 3 angles and back cutring the valves.

That is more than enuff for what you want to do.
However, because the Magnum heads are limited to .52 lift, aren't I limiting the HP?
No, not at all. Your limited in HP more so with the ports abilty to flow more air. True, valve lift has a lot to do with making HP, but at this level your asking for, you'll have no need to go that far with lift.

You could make 400 HP with a cam that lifts only .480 or less.

And then my final question is about timing case vs. timing cover. Is this a timing 'case?'
Timing cover.

On to the lifters/rods. I don't quite know how to pick them out. Hydraulic flat tappet? Solid? Hardened pushrods?

Lifters go with the cam and order them with the cam. Most times, there included.
IF your staying with the roller set up in your engine, just order the cam because you can reuse the roller lifters without a problem.

Cams come in few flavors.
Hyd
Solid
Then rollers in Solid or Hyd. The lifters are a Solid body for solid cams and Hyd. Bodied for Hyd. cams.

Keep the pushrods as well. No need to change them unless your going to make some real heavy duty power.

Or do I just need one of those chrome covers? Hmm, maybe Borders Books will have one of those small-block books that I can go pick up...
The Chrome covers are nice eye candy, there smoother finish is to aid oil drain back. Skip Boraders, they probably won't have it, but I guess it is worth a check. Or, click here http://www.manciniracing.com/ and order up a Magnum engines book from MoPar and How to rebuild my small block MoPar from SA Design.

I am lost

Read the books first and that will help light up the way. Then you wont feel so out in left feild.